Power generation cost soaring on rise in international fuel prices Craving for costly oil-fired plan

[bluesky]

Power generation cost soaring on rise in international fuel prices
Craving for costly oil-fired plants proves ‘wrong’

@idune, what suggestions do you have for the GoB led by Hasina. Please tell us should she dismantle all the oil-fired power plants, because it was a wrong decision. But, in that case do you realize how unbearable it will be for the poor people like me to sleep without fans overhead. People will then curse you and Hasina. By the way, is it only BD that will suffer from the rising cost of furnace oil or all other countries will also suffer?

 

[Homo Sapiens]

December 14, 2017
10,500MW Power Generation Planned For Boro Season
Manjurul Ahsan



Dependence on expensive fuel oil-fired power plants is set to shot up during coming Boro season as the government plans to generate up to 5,900MW power from fuel oil-fired plants which was 3,400MW during the previous season.

The state-run Power Development Board would be able to generate up to 10,500MW power during Boro irrigation season spanning from January to May, said officials, adding that some 56 per cent of the generation capacity would be from liquid fuel-fired power plants installed in public and private sectors.

At an inter-ministry meeting held on Wednesday, the power board placed demands for 679,000 tonnes of diesel and 800,000 tonnes of furnace oil to feed the fuel oil-fired power plants during Boro irrigation season, the board chairman Khaled Mahmud told after the meeting at energy division, Bangladesh Secretariat.

He said that the dependence on fuel oil-fired power plants would be increased mainly due to shortage of supply of natural gas.

The Rural Electrification Board chairman Moin Uddin told the meeting, chaired by the prime minister’s energy adviser Tawfiq-e-Elahi Chowdhury, that the demand for electricity in the country’s rural areas would be approximately 6,000MW which was 5,200MW in the previous irrigation season.
When asked about the increasing cost of power generation, the power board chairman said that the cost of electricity generation, even using expensive fuel oil-fired plants, was much less than the cost of ‘no electricity.’
Citing the grounds for increasing power generation costs due to growing dependence on fuel oil-fired power plants, the Bangladesh Energy Regulatory Commission raised the average retail price of electricity by 81.91 per cent, up from Tk 3.76 per kilowatt-hour or unit to Tk 6.84, in nine phases between March 2010 and December 2017.

Now the country’s available power generation capacity is 13,147MW, of which fuel oil-fired plants’ combined power generation capacity stands at 3,900MW, according to the power board’s daily generation reports.

Of the total power generation capacity, the gas-fired power plants with 8,161MW available capacity need up to 1,841 million cubic feet of natural gas while they get only 920 mmcfd, according to the reports of Petrobangla, the state-run Oil, Gas and Mineral Resources Corporation.

The power board chairman said that the dependence on liquid fuel would decrease significantly if they got gas supplies at a rate of 1,300 mmcfd or more.
He said that the issue of gas supply capacity against demand at the power stations would be settled at a separate meeting, yet to be scheduled.
Khaled said that railway and shipping ministry officials assured of facilitating transportation of fuel oils from Chittagong to the North-Bengal smoothly.

Petrobangla supplies 2,677 mmcfd gas against demand for at least 3,700 mmcfd, hampering power generation and industrial productions as well as cooking at nearly half of three million households.
Officials said that Petrobangla would be able to increase gas supplies by 500 mmcfd from imported Liquefied Natural Gas from May 2018 as the US firm Excelerate Energy would build LNG storage and re-gasification facilities on Moheshkhali Island, Cox’s Bazar, by then.

 

[bluesky]

Because, awami league looting needs to continue and building power plants take 10 years. Who the hell you think you kidding?

During Begum Zia's terms, she did not take initiatives to build a single power plant that could have added at least 1 mW of power to the national grid. but, even without doing anything for the country, she managed to send $22 billion out of the country. By the way, did you receive some money in return for the blind support you are giving to their ill deeds? Now, you are throwing mud at others that reminds us of what Begum Zia did not do for the country., not even the quick rental power stations.

 

[idune]

Perhaps we need to give power plant project to you rather than the Japanese or Chinese? Your advance jamati technology can bring power plant out of thin air by just saying 'Chiching fak'. Isn't it?

awami thugs can not push the lie and looting scheme any more and now need "jammat" to hide behind. This is true picture of awami league "chotona" which came from their leader mujib who surrendered willingly.

@idune, what suggestions do you have for the GoB led by Hasina. Please tell us should she dismantle all the oil-fired power plants, because it was a wrong decision. But, in that case do you realize how unbearable it will be for the poor people like me to sleep without fans overhead. People will then curse you and Hasina. By the way, is it only BD that will suffer from the rising cost of furnace oil or all other countries will also suffer?

Your comments further proves that you are desperate to cover awami looting scheme. Article posted already said what was the plan. NO WHERE in the world it takes 10 years for building power plant. You awami thugs try to hide behind BNP which was in power for 5 years BUT awami league has been in power for 10 years still did not solve the problem that you awami puppets criticize BNP for. Rather, situation is worsen by 41% electricity through rental power plants and 9 time increase of electricity price. How may time BNP increased the electricity price???? Now because of cost competitiveness indian export of garments moveing ahead of Bangladeshi one. And you awami indian dalals are cheer leading usual anti Bangladeshi looting scheme.

"Power Division also had planned to retire the rental and quick-rental power plants after expiry of their initial tenures and bring down the electricity tariffs as well.

But, instead of retiring the 'expensive' power plants, the government continued extending their tenures and installed more such plants afresh with the capacity-payment provision intact in the order, the BPDB official said."

 

[Homo Sapiens]

10,500MW Power Generation Planned For Boro Season

At an inter-ministry meeting held on Wednesday, the power board placed demands for 679,000 tonnes of diesel and 800,000 tonnes of furnace oil to feed the fuel oil-fired power plants during Boro irrigation season, the board chairman Khaled Mahmud told after the meeting at energy division, Bangladesh Secretariat.

679k ton diesel and 800k farnace oil is not needed. Our @idune will help our farmers to raise the Boro crop by giving electricity from his advanced 'gayebi' powerplant which he can switch on or off by just saying 'Chiching fak'.Or does he think, farmers don't need to grow Boro crop if that means taking power from 'Awami looting scheme' aka quick rental power plant?

 

[idune]

679k ton diesel and 800k farnace oil is not needed. ...farmers don't need to grow Boro crop if that means taking power from 'Awami looting scheme' aka quick rental power plant?

Why awami looters could not build power plant in 10 years??? If awami "efficient" thugs can not build it in 10 years why blame other party not being able do that in 5 years????????? That is the question awami thug like yourself are dreaded to answer and try to shift blame on others.

Oh, after price of electricity increased 9th times, farmers no longer can produce rice without loss. All because of costly awami rental power looting scheme rather than permanent power plants. Therefore, we are seeing steady decline of rice production and huge spike in rice import. So much for awami "food self sufficiency" and "10 taka kg rice" propaganda.

 

[bluesky]

Why awami looters could not build power plant in 10 years??? If awami "efficient" thugs can not build it in 10 years why blame other party not being able do that in 5 years????????? That is the question awami thug like yourself are dreaded to answer and try to shift blame on others.

Oh, after price of electricity increased 9th times, farmers no longer can produce rice without loss. All because of costly awami rental power looting scheme rather than permanent power plants. Therefore, we are seeing steady decline of rice production and huge spike in rice import. So much for awami "food self sufficiency" and "10 taka kg rice" propaganda.

After reading the account of @idune, i find he has successfully exposed the truth about @Homo Sapiens.

 

[Dot]

@idune Listen, first counter my statement. How come you support a shitty article in the first place which compares NAMEPLATE capacity with under-stated actual production. Second, its not only production capacity that matters. You have to invest substantial amount on distribution channels too to utilize the produced electricity efficiently. AL govt since invested heavily on sub-stations, high capacity transformers, high-volt lines. Initially rentals were for a defined period, but govt had to extend their tenure as Base-load plants did not materialize on time (nothing Unususal here as these are mega projects). Eventually rentals will be phased out as bigones come online. But some rentals will always stay since they support peak-time demand (it's a norm). Neither AL nor BNP got Aladin's Magic Lamp, to make big projects appear over night! And do some research, mega projects almost always overshoot deadlines. Thanks for the rentals, import from India and better distribution lines, we have 24/7 electricity now-a-days. Heck, consumer equipments companies are giving out 10-12 years warranty because of the quality electricity we have now (5 years used to be the norm!).

 

[idune]

@idune Listen, first counter my statement. How come you support a shitty article in the first place which compares NAMEPLATE capacity with under-stated actual production. Second, its not only production capacity that matters. You have to invest substantial amount on distribution channels too to utilize the produced electricity efficiently. AL govt since invested heavily on sub-stations, high capacity transformers, high-volt lines. Initially rentals were for a defined period, but govt had to extend their tenure as Base-load plants did not materialize on time (nothing Unususal here as these are mega projects). Eventually rentals will be phased out as bigones come online. But some rentals will always stay since they support peak-time demand (it's a norm). Neither AL nor BNP got Aladin's Magic Lamp, to make big projects appear over night! And do some research, mega projects almost always overshoot deadlines. Thanks for the rentals, import from India and better distribution lines, we have 24/7 electricity now-a-days. Heck, consumer equipments companies are giving out 10-12 years warranty because of the quality electricity we have now (5 years used to be the norm!).

awami thugs and looting advocates makes it so easy to respond.

Why awami looters could not build power plant in 10 years??? If awami "efficient" thugs can not build it in 10 years why blame other party not being able do that in 5 years????????? That is the question awami thug like yourself are dreaded to answer and try to shift blame on others. And only awami looting mind will call 10 years as "overnight".

 

[Nilgiri]

@idune @Nilgiri Stop spitting out these LOW Level articles. Atleast learn to scrutinize these first. The pathetic writer is comparing rentals' nameplate capacity with total actual production (even not actually). So learn ABCD first about basic stat before accepting anything at face-value. AND to dear @idune, why the hell you are after me. I like to remain pragmatic. Given the situation, I support Sheikh Hasina for the time-being (she is a very good commander-in-chief) . Read my prevoius relpies, I don't refrain myself from criticizing whatever I find wrong. Grow up. We live in a dirty reality and surely it's not a Cinderella Story. Accept it and Stop bugging!

I am not spitting out any articles, just adding my commentary to it. Take it or leave it, I leave it up to you.

Nameplate capacity vs actual production is settled by the cost of the tarriff to the consumer. Obviously with the price hikes at the degree happening now, not much production realisation is happening as ratio of the capacity added given the demand/supply mismatch that is accelerating.

BAL was promising (and could have achieved if put their mind and focus to it):

a) these rental powerplants would have stopped/scaled back by now as dedicated greenfield capacity comes online (and they had plenty of time and international loan access to do such)

b) The end consumer tariff would have decreased (heck even stabilised to regular inflation trend would be ok)...not DOUBLING in the time periods we are seeing here.

Simply adding more token rental capacity given what has happened by doing that is not going to solve the problem....esp if BAL does not reform why it allowed such a travesty to happen (given the two promises) in the first place and address that section of bureaucracy.

This is not targetted at SHW at all specifically but rather BAL govt/bureaucracy. You have to admit you have a big problem in order to address it. Otherwise another decade or so or even more (because of how electricity tariffs and other basic input have long term multiplier effect residuals) is down the drain for basic manufacturing and light industry (and household based commerce+demand) past RMG base.

You see things like electricity price is not something BBS can manipulate, it shows a glaring weakness in BD.

Why awami looters could not build power plant in 10 years??? If awami "efficient" thugs can not build it in 10 years why blame other party not being able do that in 5 years?????????

Exactly. Actually even 3 years is very doable to get major power plant projects if you have competent ministers who go for international loans and keep all their main bureaucrats in line.

When there is no discipline and no real opportunity for private sector to try something on their own, well then status quo and some "future plan is coming just wait" BS will continue and BD economy suffers in mean time. Because even when the future plan stuff is realised to some extent, there will be a ramped mismatch by then too.

Staying ahead or close to demand curve seems to be foreign concept for BD political oligarch thugs....because it takes too much effort and not enough payout from taking their cut of juicy inflation all because they have all the guns and sticks to manhandle the population should they get frustrated.

 

[Dot]

@idune @Nilgiri Recent price hikes are in part according to govt's shift from subsidy based pricing policies to market based ones. Remember I told before, govt's vision is to open up the energy market to open market system in the long run. And regarding big power projects delays; Well, the reality is before us to see for ourselves. We started from "zero". We have huge deficiencies in both bureaucratic and public administration (India was there once!). On paper things may look easy & straight forward, but the reality is completely different. Land acquisition hurdles, bureaucratic issues, corruption, funding issues, technical capability issues and so on (India was there too!). Beauty of AL govt is that they got realistic plans, vision & also quite good approach to it. Very recently Sheikh Hasina told that we all going to get smart grid system where people could add unused electricity from their home solar (online solar system) to the local grid. Just remember, as a LDC & a country started at "0" not so long ago, we have thousands of issues everywhere. We should learn to take PRIDE in what we have achieved so far.

 

[Zabaniyah]

To achieve energy security, a country has to implement a combination of renewable and non-renewable energy sources.

Yes, it is true that a lot of big names in the private sector are now opening up power plants and banks are stepping in to take a bigger share of the pie. It is an attractive and profitable business. And admittedly, it is a pricey way of generating power. But what choice do we have? Hopefully, with the nuke power plant, things will look easier ahead.

 

[mb444]

I am not getting into this slanging match. All I am going to say is that BD does not buy oil on a day to day basis.

BD like any country buys oil futures. Purchases are made atleast six months to year in advance. Temporary blips does not really matter.

In global economy there is currently oil over production. Impact on BD will be minimal. In addition BD buys from Saudi and UAE and vast majority of it is sold on discount. We have not bought anything at global prices since the late 90s.

 

[idune]

I am not getting into this slanging match. All I am going to say is that BD does not buy oil on a day to day basis.

BD like any country buys oil futures. Purchases are made atleast six months to year in advance. Temporary blips does not really matter.

In global economy there is currently oil over production. Impact on BD will be minimal. In addition BD buys from Saudi and UAE and vast majority of it is sold on discount. We have not bought anything at global prices since the late 90s.

Wrong and Wrong.

Awami league having 41% of power generation capacity on rental power plants running on expansive oil is a disaster; that is the main point. How did you missed that? On top of that, awami league defying PDB efforts and kept this rental power plant looting scheme alive for 10 years. Bangladeshis witness 10 time rate increase. These looting scheme plants were suppose to be temporary but now going to be even longer and more in numbers so people will have to pay for awami looting.


BD does not get any discount nor always buy future contract. There are good amount that get bought by tender process that Bangladesh hold. Besides, future contract from open market does not include any discount. Dont't blabber something that you have no clue about.

Oil price is sensitive to geopolitical situation and conflict. Saudi intervention in Yemen and Yemen attack on oil rich region (along with other ME situations) recently drove oil price close to $60. There is potential to go even higher.

 

[bluesky]

Who can beat @idune, @Nilgiri or a woman when it is debate? They keep on repeating the same thing.